Global airlines raise 2017 profit forecast

by Garry Watts June 7, 2017, 10:48
Global airlines raise 2017 profit forecast

To ensure that air cargo is ready to benefit from the expected United States dollars 1 trillion boosts in trade growth arising from the TFA and the improving global economic environment, we need a major overhaul of industry processes. This is owing to the restructuring of the industry, a relatively strong economy and a resilient USA dollar. "On safety, the region's carriers achieved a major milestone with zero jet hull-losses in 2016".

But IATA warned U.S. airlines had less of a buffer against fuel price rises and faced a tight labour market with rising wages. A tight labor market is adding more pressure to profits by pushing up wages.

It committed the airlines to implement prescribed security standards and recommended practices to the highest level, support governments in the development and implementation of additional security measures when required to protect air transport, besides implementing the industry- driven aviation security initiatives such as Smart Security, Passenger Name Record (PNR) /Advance Passenger Information (API).

Mr Alexandre de Juniac, director general of the International Air Transport Association (Iata), said the violence in London could discourage potential visitors as similar attacks did in Europe past year.

He said the confidence of the public and the airline industry "has been rattled by inconsistencies in how some states have responded to concerns over the potential for explosives to be concealed in large portable electronic devices".

Higher operating costs are becoming the "emerging challenge for the airlines", the IATA's chief economist Brian Pearce warned at the association's AGM in Cancun.

But Alexandre de Juniac, CEO of the IATA group that represents 265 airlines worldwide, repeated calls on Monday for governments to find alternatives to the ban. "And the $7.69 average profit per passenger still does not provide a thick buffer to economic shocks".

That equates to $US7.69 per passengers, down from $US9.13 in 2016 and $US10.08 in 2015.

It said the average net profit margin stands at 4.2% (down from 4.9% in 2016). "For a third year in a row we expect returns that are above the cost of capital", de Juniac added. "Airlines must remain vigilant against any cost increases, including from taxes, labour and infrastructure", said de Juniac.

Trump Breaks Campaign Promise, Keeps Embassy in Israel in Tel Aviv
Jerusalem is considered one of the most complicated issues to resolve in a conflict that has spanned almost a century. In 1995, the US Congress passed the Jerusalem Embassy Act which mandates moving the embassy to Jerusalem by 1999.

IATA raised its airline industry profitability outlook for 2017, citing strong overall performance. Latin American and Mideast carriers are expected to earn $800 million and $400 million respectively, while those in Africa may lose $100 million, all improvements on prior projections.

Airlines have criticized March decisions in the US and the United Kingdom to prohibit electronics larger than cellphones in carry-on bags for flights from specific countries in the Middle East and Africa.

Underlying this performance is a strong demand environment. The IATA traffic report for April says that passengers are avoiding routes where the large PED ban is in place.

It said total cargo carried is expected to reach 58.2 million tonnes. That includes air cargo, which has awakened from a six-year coma. Industry revenues are expected to increase to $743 billion, $38 billion more than 2016.

Some regions will still see some modest benefits from hedges but this will be insufficient to offset the rise of other operating costs, according to IATA.

Asia Pacific will contribute $7.4b to the industry total. This assumes an average price of Brent crude of $US54 a barrel, up from $US44.60 in 2016, with jet kerosene prices averaging $US64 this year.

Meanwhile, Singapore Airlines chief executive Goh Choon Phong has commenced his one-year term as IATA chairman, following the conclusion of the 2017 annual general meeting. Nevertheless, "We are the business of freedom". The safe and efficient global movement of goods and people is a positive force in our world.

During his keynote speech, he said that industry representatives will discuss the best solutions to continue to boost and promote its catalytic role in global prosperity.

"In parts of the world, nationalistic political rhetoric points towards a future of more protectionism", he said.

TOP News

Moles arraigned on charges of unlawful possession and transportation of a firearm
Ironically, the doctor's Facebook page features both photos and comments which appear to indicate his support for Donald Trump. The dark side wants to disarm the public so they can ... just walk through any resistance to their fascist thought police".

Girl Thrown Out of Soccer Game Because She 'Looks Like a Boy'
She tweeted , "Mili, don't EVER let anyone tell you that you aren't ideal just as you are.i won championships with short hair". But while she led her team to the finals, when it came time to play officials disqualified the team, saying she is a boy.

White House: Trump, Netanyahu pledge to work together to combat terrorism
Netanyahu effusively praised Trump before his museum address and sprang to his feet to lead applause for him several times. Trump is now on his first overseas trip since becoming president of the United States.

3 killed in shooting at Greenville Nissan dealership
Video shot by an witness shows the men struggling and fighting as Hutchinson is able to gain hold of his weapon and open fire. The fugitive had been sought since he failed to appear for a March court date in Minneapolis, forfeiting a $50,000 bond.

Abbott Announces Special Session
Ironically, the only one of these groups who appears to be using the special session to fundraise is Texas Values . Those proposals passed the House but died in the Senate during the regular session.

Cops: Racial slur sprayed on LeBron James' Los Angeles home
Los Angeles Police Department officials said the Cleveland Cavaliers star was not at the residence at the time of the incident". Hate in America, especially for African-Americans, is living every day. "I can't be home to see my boys right now", James said.

B Sai Praneeth rallies to win Thailand Open Grand Prix Gold title
Praneeth came from a game down in the final to beat Christie 17-21, 21-18, 21-19 in a match which lasted one hour and 11 minutes. Thongnuam made Praneeth work hard for his points, but the Indian had the last laugh.

Apple Announces HomePod, its Answer to Alexa and Google Home
Microsoft also has announced its own speaker with Samsung's Harman business; it will use Microsoft's Cortana digital assistant. According to Apple , the smart speaker will only start collecting information after the "Hey Siri" voice command is activated.

Tiger Woods is lost, in every literal and figurative way
Woods told police he was recovering from surgery. "I think he's a good person, and it's kind of sad". Woods then said a statement that it was a reaction to the prescription drugs he had been taking.

Walmart testing employee deliveries
Wal-Mart also said it is taking precautionary actions to ensure its employees are vetted before delivering packages to customers. The company calls this "Associate Delivery" and it already started testing this concept with some orders.